Bangkok--Mar 4--SET
Khon Kaen Sugar Industry Plc., the fifth largest sugar producer and distributor in Thailand, will be the first in its industry to step into the capital market. The sugar producer, with a paid-up registered capital of more than THB1.5 billion, will list on the SET on March 7, 2005 under the Agro & Food Industry Group. The company may move on to other related businesses, e.g., electricity generation, ethanol, fertilizer and alcohol-based chemicals, in order to create added-value.
Ms. Sopawadee Lertmanaschai, Executive Vice President of The Stock Exchange of Thailand (SET) revealed that the SET Board of Governors has endorsed the listing on the SET of the shares of Khon Kaen Sugar Industry Plc., which will be listed under the Agro & Food Industry Group, in the Food & Beverage Sector commencing March 7, 2005 onwards using the symbol “KSL”.
“Khon Kaen Sugar Industry Plc. is the first in the sugar industry to be listed on the SET. Apart from its core business in sugar production, it also operates in related businesses, e.g., molasses, sugarcane waste, filter waste and other businesses that involve the utilization of waste products from sugar production, such as electricity generation, ethanol, fertilizer and alcohol-based chemicals.
“As we can see, the sugar industry relates to many industries and requires a large labor force. More to the point, in the existing, imperfect, highly competitive global sugar industry, the capitalization of the industry’s companies through the use of the capital market will better enable the sugar producing firms to cut their costs and expand their growth. These benefits from the capital market will help improve their competitive edge. Consequently, both the business and the economy will benefit from it”, said the SET Executive Vice President.
Khonkaen Sugar Industry Plc., or KSL, has paid-up registered capital of THB1.55 bln. (approx. USD38.75 mln.), which consists of its original 1,270.46 mln. shares of common stock and an additional 279.54 mln. shares in capital increase at the par value of THB1.00 per share. KSL offered its shares in its initial public offering (IPO) on February 24-25, 2005 at the price of THB4.30 per share. In addition, it has also offered 10 mln. shares on February 24-25, 2005 to sugarcane farmers who registered and sold their produce to KSL and its subsidiaries at THB4.30 per share. As a result, it now has more than 4,000 retail shareholders after this capitalization.
In addition, KSL has also set aside 25 mln. shares as green shoe options, which are equivalent to 8.94% of all shares being offered at this time. The move will help maintain the stability of its share price after trading starts. Asia Plus Securities Co. Ltd. acted as KSL’s financial advisor.
Out of the expected THB1.166 bln. worth of funds raised, KSL will spend THB400 mln. in its Khon Kaen Sugar Power Plant, another THB120 mln. in its Ethanol project, and THB40 million in its fertilizer project. The remaining THB606 mln. will be used as its working capital.
At present, KSL is Thailand’s fifth largest sugar producer with the daily production capacity of around 67,000 tonnes. It has 10 subsidiary units under it, consisting of 6 sugar and relevant businesses, 2 support businesses, including Thai Sugar Terminal Pcl. (TSTE), in which KSL holds a 24% of share, and another 2 joint investment projects.
KSL’s main source of revenue comes from its sugar sales which accounted for 87% of its total revenues in 2004. Most of it comes from overseas sales. The remaining 13% of its revenues come from the sale of molasses and other products. KSL recorded THB593 mln. in net profits in 2004, a THB340 mln., or about 74%, rise from 2003. KSL’s dividend payout policy is set at no less than 50% of available cash after it services the company’s legal debt provision requirements.
Major shareholders of Khon Kaen Sugar Industry Plc. are the Chinthammit Group and alliance, holding 68.79% of the company’s paid-up registered capital after its IPO.
For more information of KSL, please www.kslgroup.com, as well as the SET’s website, www.set.or.th, and the SETTRADE.COM’s website, www.settrade.com
For more information,
please contact the Corporate Communication Dept.:
Ladawan Kantawong Tel: 0-2229-2036 /
Kulvida Jintakawong Tel: 0-2229-2037 /
Nattaporn Boonprapa Tel: 0-2229-2049 /
Watsamon Saowakhonsathien Tel: 0-2229-2797 End.